December corn (ZCZ26) futures on Friday fell 4 1/2 cents to $4.56, closed at a 3.5-month low close, and for the week were down 18 1/4 cents. November soybeans (ZSX26) Friday rose 3 1/2 cents to $12.56 1/2 and for the week were down 4 3/4 cents. December soybean meal (ZMZ26) futures fell $1.20 to $346.10 and for the week were down $11.00. December soft red winter (SRW) wheat (ZWZ26) on Friday rose 1/4 cent to $6.25 and for the week was down 35 1/2 cents. December hard red winter (HRW) wheat (KEZ26) lost 1 1/4 cents to $6.64 1/2, hit a more-than-three-month low, and for the week was down 39 1/2 cents.
The December corn futures market has had a technically bearish weekly low close every Friday so far this month. However, the bulls are hoping for a rebound in prices this week, as the Relative Strength Index (RSI) shows December corn at its most technically oversold level in more than 2.5 years.
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www.barchart.comU.S. corn and soybean harvesting remains in high gear, which is keeping the commercial hedgers active and keeping the speculative corn and bean bulls on the sidelines. Weather forecasters say harvesting of corn and beans in the U.S. Midwest will advance well overall during the next two weeks around some precipitation in most of the western Corn Belt early this week and around mid-week.
www.barchart.comAttention will turn from U.S. supplies to export demand in the coming months. Demand for U.S. corn abroad has been decent in recent weeks. Chinese demand for U.S. soybeans has picked up recently. The bean bulls will be looking for more daily flash sales this week.
In the meantime, the winter wheat futures markets saw pauses Friday to end another bearish trading week. Technical selling pressure may resume early this week as prices continue to trend down on the daily bar charts.
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www.barchart.comFocus of wheat traders will remain on the amount of grain being shipped out of the Black Sea region and any progress on a ceasefire between warring Russia and Ukraine. Reports say Presidents Donald Trump, Vladimir Putin, and Xi Jinping will at some point soon hold discussions on a potential ceasefire between Russia and Ukraine. Last week, Egypt’s state grain buyer announced intentions to purchase wheat with the likely sources from central or western Europe. The country is typically an importer of wheat sourced from the Black Sea, another early sign of the impact of transit disruptions.
Cotton Futures Trapped in a Trading Range
December cotton (CTZ26) futures on Friday fell 59 points to 80.20 cents and for the week were up 20 cents. The cotton futures market remains trapped in a three-week-old trading range on the daily bar chart. Buying interest in the natural fiber has been limited by a very wobbly U.S. stock market, led by a big selloff in the technology sector recently.
Weather forecasters say western Texas and southwestern Oklahoma will see rain into Tuesday, and showers Thursday into next Friday will slow harvesting and may cause cotton-quality declines. Much of the cotton crop in the southern Plains has already been harvested.
Cotton traders will be watching for signs of export demand and weather impacts on remaining crop quality. Cotton futures traders will continue to look to the grain futures markets for price direction in the coming weeks.
The approaching holiday season and better demand for apparel may offer some better support to cotton futures. However, sales of U.S. cotton abroad need to continue to improve for cotton futures prices to sustain an uptrend.
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On the date of publication, Jim Wyckoff did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.